Lehman operations in Dubai stopped

September 16th, 2008 - 11:03 pm ICT by IANS  

Lehman BrothersDubai, Sep 16 (IANS) Bankrupt investment bank Lehman Brothers has been precluded from doing any business in the Dubai financial market unless otherwise decided by its administrators.The Dubai Financial Services Authority (DFSA) issued a statement Tuesday afternoon stating that the bank has been precluded from conducting any business in its branch at the Dubai International Financial Centre (DIFC).

Lehman had set up the branch Aug 28, 2006.

Stating that Lehman was placed under administration in Britain Sep 15, DFSA said: “The effect of that action was to place control of Lehman and all its operations, including its DIFC branch operation, under control of the administrators, PricewaterhouseCoopers.”

“Until and unless the administrators determine otherwise, Lehman (including the DIFC branch) is precluded from conducting business,” it added.

According to the statement, Lehman has not been in breach of any of DFSA’s requirements.

Stating that no client money was being held by the DIFC branch of Lehman, DFSA said any money invested in the Lehman UK funds, was regulated by the UK Financial Services Authority and was required by it to be segregated from the assets of Lehman.

The statement added that DFSA was in close touch with the UK Financial Services Authority, “but does not expect any early change to the current situation”.

DIFC is an onshore financial hub that aims to bridge the time gap between the Hong Kong and London financial markets.

There are over 700 banking and financial firms registered with DIFC.

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